Icelandair Group hf. - Company Announcement

Traffic Data July 2011

Record passenger numbers by Icelandair - 254 thousand passenger carried

Icelandair carried 254 thousand passengers in July which is the largest month
in Icelandair history. The total number of passengers increased by 18% between
years. Load factor was 85.4% and was 0.8 percentage points lower than last
year.  The number of passengers carried by Air Iceland decreased by 4% compared
to July 2010.  The load factor was 73.5% and improved by 4.6 percentage points.
 Decrease in passenger numbers is due to the cease of the Vestmannaeyjar route. 

Sold block hours are down 11% between years, due to maintenance work at
Icelandair Cargo. Freight increased by 13% since last year mainly due to more
export from Iceland. Available hotel rooms were up 7% and the utilization of
hotel rooms was 85.3%. 



ICELANDAIR            JUL 11   JUL 10       CHG%     YTD 11     YTD 10      CHG%
--------------------------------------------------------------------------------
No. of Passengers    254,437  216,129        18%    976,606    809,689       21%
 (PAX)                                                                          
Load Factor (%)        85.4%    86.2%   -0.8 ppt      78.5%      76.2%   2.3 ppt
Available Seat KM    832,823  700,169        19%  3,459,916  2,899,893       19%
 (ASK´000)                                                                      
AIR ICELAND           JUL 11   JUL 10       CHG%     YTD 11     YTD 10      CHG%
--------------------------------------------------------------------------------
No. of Passengers     37,793   39,502        -4%    203,680    196,991        3%
 (PAX)                                                                          
Load Factor (%)        73.5%    68.9%    4.6 ppt      69.3%      67.9%   1.4 ppt
Available Seat KM     22,078   23,007        -4%    103,521     94,633        9%
 (ASK´000)                                                                      
CAPACITY              JUL 11   JUL 10       CHG%     YTD 11     YTD 10      CHG%
--------------------------------------------------------------------------------
Fleet Utilization      85.1%   100.0%  -14.9 ppt      93.4%      93.7%  -0.3 ppt
 (%)                                                                            
Sold Block Hours       3,054    3,423       -11%     20,777     19,485        7%
ICELANDAIR CARGO      JUL 11   JUL 10       CHG%     YTD 11     YTD 10      CHG%
--------------------------------------------------------------------------------
Available Tonne KM    19,110   16,349        17%     95,768     89,060        8%
 (ATK´000)                                                                      
Freight Tonne KM       6,377    5,621        13%     43,180     43,037        0%
 (FTK´000)                                                                      
ICELANDAIR HOTELS     JUL 11   JUL 10       CHG%     YTD 11     YTD 10      CHG%
--------------------------------------------------------------------------------
Available Hotel       37,652   35,212         7%    148,797    142,877        4%
 Room Nights                                                                    
Sold Hotel Room       32,112   29,077        10%    101,556     95,991        6%
 Nights     
Utilization of         85.3%    82.6%    2.7 ppt      68.3%      67.2%   1.1 ppt
 Hotel Rooms                                                                    



For further detailed information please contact:

Bogi Nils Bogason, CFO Icelandair Group tel: + 354 665-8801

Íris Hulda Þórisdóttir, Director Investor Relations Icelandair Group tel: + 354
840-7010

Attachments:

Traffic Data July2011.pdf